A Michigan property management company manages a 40-unit apartment complex on behalf of an owner who is not a licensed real estate professional. The owner instructs the property manager to reject applicants who are over 250 pounds. The property manager follows the instruction and rejects a qualified applicant who weighs 260 pounds. Under the Michigan Elliott-Larsen Civil Rights Act, which of the following is most accurate?
Correct Answer
D) Both the owner and the property manager may be liable because weight is a protected class under the Elliott-Larsen Act and following discriminatory instructions does not shield the property manager from liability
Under the Michigan Elliott-Larsen Civil Rights Act (MCL 37.2502), weight is an explicitly protected class in housing. Both the owner who issued the discriminatory instruction and the property manager who carried it out may be held liable. In fair housing law, following a discriminatory instruction from a principal does not insulate an agent from liability. The property manager had an obligation to refuse the discriminatory directive, just as a licensed real estate salesperson must refuse unlawful instructions from a broker or seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
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